31 03-2012 - 1 q12 earnings release

1Q12 Earnings Release

SONAE SIERRA BRASIL ANNOUNCES
Investors ADJUSTED EBITDA OF R$41.9 MILLION IN
Relations
1Q12, A 10.4% INCREASE OVER 1Q11

Carlos Alberto Correa São Paulo, May 10th, 2012 – Sonae Sierra Brasil S.A.
Investors Relations Officer (BM&FBovespa: SSBR3), a leading Brazilian shopping mall
developer, owner and manager, announces today its results
for the first quarter of 2012 (1Q12).
Murilo Hyai
Investors Relations Manager

Eduardo Pinotti de Oliveira
Highlights
Investor Relations Analyst  The Company’s Net Revenue increased 13.9% to
R$56.6 million in 1Q12 compared to R$49.7 million in
Website: 1Q11.
www.sonaesierrabrasil.com.br/ri  Adjusted EBITDA totaled R$41.9 million in 1Q12, an
increase of 10.4% over the same period of last year
Email: with adjusted EBITDA margin reaching 74.0% in 1Q12.
ribrasil@sonaesierra.com
 Adjusted FFO totaled R$34.6 million in the 1Q12, in line
Phone: with 1Q11. Adjusted FFO margin reached 61.0% in
+55 (11) 3371-4188 1Q12.
 Same-store rent (SSR) reached, once again, a double-
digit growth of 12.1% in 1Q12. Same-store sales (SSS)
1Q12 CONFERENCE CALLS
increased by 9.8% in the quarter.

Portuguese  In January 2012, the Company obtained the controlling
ownership interest in Shopping Plaza Sul.
May 11th, 2012
09:00 am (New York time)  In March 2012, we concluded the first issue of
10:00 am (Brasilia Time) debentures, totaling R$300 million.
Phone: (55 11) 2188-0155  On March 27th, 2012, Sonae Sierra Brasil successfully
Code: Sonae Sierra Brasil opened its 11th shopping mall, Uberlândia Shopping, in
Uberlândia, Minas Gerais State.
English
May 11th, 2012
10:00 am (New York time)
11:00 am (Brasilia Time)
Phone: (1 412) 317-6776
Code: Sonae Sierra Brasil

1


Financial Indicators
(R$ million) 1Q12 1Q11 Var. %
Net Revenue 56.6 49.7 13.9%
EBITDA 41.4 38.0 9.1%
Adjusted EBITDA 41.9 38.0 10.4%
Adjusted EBITDA Margin 74.0% 76.3% -238 bps
Funds From Operations (FFO) 34.1 34.4 -0.9%
Adjusted FFO 34.6 34.4 0.5%
Adjusted FFO Margin 61.1% 69.2% -816 bps
Net Operating Income (NOI) 54.9 47.7 15.1%
NOI Margin 95.1% 94.2% +87 bps

Operating Indicators
1Q12 1Q11 Var. %
Total GLA ('000 sqm) 402.5 349.1 15.3%
Owned GLA ('000 sqm) 254.0 202.6 25.3%
Number of shopping malls 11 10 10.0%
Sales (R$ million) 936.4 840.7 11.4%
Sales/sqm (monthly average) 939.9 847.7 10.9%
Occupancy rate 98.5% 97.6% +85 bps
Cost of occupancy (% of sales) 9.1% 9.9% -74 bps
SSS/sqm 939.6 856.0 9.8%
SSS/sqm - Satellite stores 1,379.3 1,249.0 10.4%
SSS/sqm - Anchor stores 815.2 747.4 9.1%
SSS/sqm - Leisure 193.5 178.4 8.4%
SSR/sqm 54.6 48.7 12.1%
SSR/sqm - Satellite stores 102.1 91.4 11.8%
SSR/sqm - Anchor stores 24.7 21.9 12.7%
SSR/sqm - Leisure 17.8 15.7 13.6%
Overdue Payments (25 days) 2.6% 2.3% +33 bps

2


MANAGEMENT’S COMMENTS
In the first quarter of 2012, Sonae Sierra Brasil continued to achieve solid operating
and financial results.

Total sales in our malls increased by 11.4% in 1Q12 over the first quarter of 2011
while same store sales (SSS) and same store rent (SSR) grew by 9.8% and 12.1%,
respectively. Occupancy rate was 98.5% at the end of 1Q12.

Financial results were also strong in the quarter. Consolidated net revenues reached
R$56.6 million, a 13.9% increase over 1Q11. Adjusted EBITDA increased by 10.4% to
R$41.9 million while NOI grew 15.1% to R$54.9 million in 1Q12. Adjusted FFO totaled
R$34.6 million in 1Q12.

Sonae Sierra Brasil also started 2012 with intense activity. In January, the Company
obtained the controlling interest ownership in Plaza Sul Shopping, in São Paulo city,
one of our best performing malls in terms of occupancy, sales per square meter and
rent per square meter. In addition, the Company concluded the first issue of
debentures, raising a total of R$ 300 million under some of the best rates and
conditions ever seen in the sector. Lastly, in March we successfully opened Uberlândia
Shopping, our eleventh mall, which added 45.3 thousand square meters of GLA to our
portfolio and should be one of our main assets going forward.

We remain optimistic about the outlook and the prospects for growth in the Brazilian
mall sector and we reaffirm our commitment to constantly enhance performance and
create value to our shareholders.

The Management

3


FINANCIAL HIGHLIGHTS

Consolidated Statutory Accounts

The consolidated financial and operating information outlined below is based on
accounts prepared in accordance with accounting policies adopted in Brazil and in
accordance with the International Financial Reporting Standards (IFRS) issued by the
International Accounting Standards Board - IASB, and correspond to the comparison
of the results obtained in the 1Q12 with the same period of the previous year, also
adjusted to the new accounting standards. Therefore, the consolidated financial
information includes 100% of the results of Parque D. Pedro Shopping (even though
the Company holds a 51% ownership interest in the mall).

Gross Revenue

Sonae Sierra Brasil’s gross revenue totaled R$61.8 million in 1Q12, an increase of
13.1% over 1Q11. Rental revenue, which represented 78% of gross revenue, totaled
R$48.2 million in 1Q12, a 16.5% increase over 1Q11 led by a combination of strong
leasing spreads, inflation adjustments and low vacancy. We also continued to see
significant increases in revenue from parking, which totaled R$6.2 million in 1Q12, a
10.5% growth over 1Q11, driven by higher parking charges and traffic. Key money
also had a notable growth of 10.8% over 1Q11, driven by the increase in the number
of leased stores, particularly in the expansions of Metrópole and Campo Limpo..

Gross Revenue Breakdown
1Q11 1Q12
1% 4% 1%

4% Rent
10% 10%
Service revenue
7%
8%
Parking revenue

77% 78% Key Money

Other revenue

4


Gross Revenue (R$ '000)
1Q12 1Q11 Var. %
Rent 48,150 41,342 16.5%
Rent contract straight-lining 342 949 -64.0%
Service revenue 4,048 4,033 0.4%
Parking revenue 6,200 5,610 10.5%
Key Money 2,657 2,398 10.8%
Other revenue 410 325 26.1%
Total 61,807 54,657 13.1%

Costs and Expenses

Costs and Expenses totaled R$15.1 million in 1Q12, a 19.3% increase over 1Q11.

Costs and expenses were mainly impacted by: (i) higher costs with personnel, mainly
attributed to additional employees hired to support the company’s growth, salary
increases above inflation and higher performance bonuses, and (ii) higher costs with
external services, which increased 28.9% compared to 1Q11. This increase is
explained by higher publishing and legal fees as well as costs associated with investor
relations activities.

Occupancy expense increased by 23.2% mainly due to the costs with a 13.8 thousand
sqm area under refurbishment for a new tenant in Parque D. Pedro Shopping.

Travel expenses totaled R$ 532 thousand, a 137.5% increase over 1Q11, mainly
associated with the prospection of new projects and with the opening of Uberlândia
Shopping.

Costs and Expenses (R$ '000)
1Q12 1Q11 Var. %
Depreciation and amortization 439 403 8.9%
Personnel 6,756 5,623 20.1%
External services 2,749 2,132 28.9%
Occupancy expense (vacant stores) 1,066 865 23.2%
Cost of contractual agreements with tenants 331 336 -1.5%
Provision (reversal) of the allowance for doubtful
446 580 -23.1%
accounts
Rent 761 625 21.8%
Travel 532 224 137.5%
Other 1,969 1,824 7.9%
Total 15,049 12,612 19.3%

Classified as:
Cost of rentals and services 9,598 8,556 12.2%
Operating expenses 5,451 4,056 34.4%
Total 15,049 12,612 19.3%

5


Changes in Fair Value of Investment Properties

Sonae Sierra Brasil adopts IFRS accounting standards, under which, an independent
entity (Cushman & Wakefield) values our investment properties at fair market value.
In 2012, the Company has decided to change the periodicity of the valuations. Instead
of quarterly appraisals, Cushman & Wakefield will perform biannual valuations (in
June and December). Management believes the change will allow the Company to
save resources and time spent to prepare and analyze the valuations, without
affecting the main indicators used by investors to analyze the Company’s
performance.

Net Financial Result

The consolidated net financial result in 1Q12 was a net profit of R$2.5 million, which
compares to a loss of R$116 thousand in 1Q11. This variance is mainly explained by
higher interest income on financial investments that amounted R$13.2 million in 1Q12
over R$5.9 million in 1Q11, given the Company’s net cash position. On the other
hand, there were also interest expenses related to the debentures, totaling R$4.1
million in 1Q12.

Net Financial Result
(R$ thousand) 1Q12 1Q11 Var. %
Financial Income (Expenses):
Interest on financial investments 13,246 5,911 124.1%
Interest on loans and financing (5,650) (4,286) 31.8%
Interest on debentures (4,124) - N/A
Other (952) (1,741) -45.3%

Total Financial Result - Net 2,520 (116) N/A

Income and Social Contribution Taxes

The current income and social contribution taxes totaled R$9.8 million in 1Q12, an
186.0% growth compared to 1Q11. This variation is mainly explained by the income
tax generated on the gains in the sale of the 5.1% ownership of Shopping Penha,
totaling R$ 2.6 million in taxes in 1Q12 and also by the tax credits, mainly related
tothe IPO costs recorded in 1Q11 in the amount of R$ 4.0 million.

6


Net Income

The Company’s net income totaled R$32.3 million in 1Q12, a 62.5% decrease over
1Q11, mainly as a consequence of not recording any gain with the valuation of
properties at fair market value, which nevertheless was recorded in 1Q11.

Net Operating Income (NOI)

Consolidated NOI totaled R$54.9 million in 1Q12, a 15.1% increase over 1Q11,
reflecting, as mentioned above, the overall positive performance in revenues.

Net Operating Income -
NOI (R$ million) 1Q12 1Q11 Var. %
Rent 48.9 42.6 14.8%
Key Money 2.7 2.4 10.8%
Parking 6.2 5.6 10.5%
Total Revenues 57.8 50.6 14.1%
(-) Malls' Operating Expenses (2.8) (2.9) -3.1%
NOI 54.9 47.7 15.1%

Adjusted EBITDA

Adjusted EBITDA totaled R$41.9 million in 1Q12, a 10.4% increase over 1Q11.
Adjusted EBITDA margin reached 74.0% in 1Q12.

Adjusted EBITDA (R$
million)
10.4%

41.9

38.0

1Q11 1Q12

7


Adjusted Funds from Operations (FFO)

Adjusted FFO totaled R$34.6 million in 1Q12, in line with the same period last year.
Adjusted FFO margin reached 61.0%. FFO in 1Q12 was negatively impacted by higher
income and social contribution taxes, which totaled R$ 9.8 million, an 186.0%
increase from 1Q11 as explained in the Income and Social Contribution Taxes section
above.

Adjusted FFO (R$
million)
0.5%

34.4 34.6

1Q11 1Q12

The reconciliation of the operating income before financial results with the EBITDA,
adjusted EBITDA, FFO, and Adjusted FFO is shown below.

Adjusted EBITDA and Adjusted FFO Reconciliation
(R$ million) 1Q12 1Q11 Var. %
Net Revenue 56.6 49.7 13.9%

Operating income before financial result 41.1 109.5 -62.5%
Depreciation and amortization 0.4 0.4 -0.7%
Gain in fair value of investment properties (0.0) (72.0) -100.0%
EBITDA 41.5 38.0 9.4%
Non-recurring expenses 0.4 - -

Adjusted EBITDA Margin 74.0% 76.3% -238 bps

EBITDA 41.5 38.0 9.4%
Net financial result 2.5 (0.1) n/a
Current income and social contribution taxes (9.8) (3.4) 186.0%
- -
FFO 34.2 34.4 -0.6%
Adjusted FFO 34.6 34.4 0.5%


Note: non-recurring expenses in 1Q12 refer to the loss in the sale of assets

8


Management Accounts

In accordance with accounting policies adopted in Brazil and IFRS, the Company
consolidates 100% of Parque D. Pedro Shopping despite owning only 51% of this mall.
However, considering the relevance of this mall to the Company’s results, we
prepared pro-forma management accounts with the proportional consolidation of
Parque D. Pedro Shopping (for additional information, please refer to page 23). The
key operating results under this methodology are presented below:

EBITDA and FFO Reconciliation
(Considering 51% of PDP) (R$ million) 1Q12 1Q11 Var. %
Net Revenue 45.1 38.9 15.9%

Operating income before financial result 31.1 86.1 -63.9%
Depreciation and amortization 0.4 0.4 -0.7%
Gain in fair value of investment properties (0.0) (58.0) -100.0%
EBITDA 31.5 28.5 10.5%

Adjusted EBTIDA Margin 70.6% 73.2% -262 bps

EBITDA 31.5 28.5 10.5%
Net financial result 2.3 (0.3) N/A
Current income and social contribution taxes (9.8) (3.4) 186.0%

FFO 23.9 24.7 -3.2%
Adjusted FFO 24.3 24.7 -1.8%


Note: non-recurring expenses in 1Q12 refer to the loss in the sale of assets

Cash, Cash Equivalents and Debt

Cash and cash equivalents, which is comprised of cash, bank deposits and financial
investments, increased by R$340.4 million, from R$390.9 million in 4Q11 to R$731.3
million in 1Q12, mainly as a result of the first issuance of debentures held by the
Company. The cash available is invested in short-term securities, at an average of
102.6% of CDI, in investment grade rated banks. The Company’s total debt,
considering amounts already drawn down from lenders reached R$710.0 million in
1Q12, and the corresponding amortization schedule is as follows:

9


Debt Amortization (R$ million)

453.9

30.0 35.2 92.8
48.6 49.5

2012 2013 2014 2015 2016 2017 and
beyond

Net cash (R$ million)

731.3 710.0

21.2

Cash and cash Debt Net cash
equivalent

Considering our cash position, the long-term profile of our debt and our operating
cash flow, we believe that we are well positioned in terms of capital required to fund
our expected growth.

Approximately 33% of the Company’s debt considering amounts already drawn down
from lenders is linked to the TR index. A total of R$131.6 million, which corresponds
to approximately 19% of the Company’s total debt, is fixed at an 8.5% p.a. interest
rate (10.0% p.a. with a 15% discount) on the loan from the Banco da Amazônia
(BASA) for the construction of Manauara Shopping. The base rate debt profile,
considering resources already drawn down from lenders at the end of 1Q12 was as
follows:

Debt Profile

Fixed
IPCA 19%
29%
CDI
19%
TR
33%

10


Sonae Sierra Brasil’s leverage strategy is to finance the greenfield projects and
expansions with an average property-level debt of approximately 50% of the total
project costs. Financing for Uberlândia Shopping, Boulevard Londrina Shopping and
Passeio das Águas Shopping has already been contracted.

In addition, the Company also secured in March 2012 the first issue of debentures
totaling R$ 300 million, which will provide funding to our continued growth strategy.
After the bookbuilding process held on March 02nd, 2012, which defined the interest
rate of the Debentures, the allocation of the tranches was as follows:

 First tranche: R$ 95.5 million, at an annual floating interest rate equivalent to
CDI + 0.96%, with a 5-year final term; and
 Second tranche: R$ 204.5 million, at an annual floating interest rate equivalent
to IPCA + 6.25%, with a 7-year final term.

Considering all the debt contracted by the Company, including amounts yet to be
drawn down, total debt would be R$914 million with an average cost of 11.4% at the
end of the quarter.

Contracted Debt Financing
Committed Balance as of
Term
Amount (R$ Interest Rate 03/31/12
(years)
MM) (R$ million)
Working Capital 20 5 CDI + 2.85% 16
Working Capital 27 6 CDI + 3.30% 24
Manauara Shopping 112 12 8.50% 132
Metrópole Shopping - Expansion I 53 8 TR + 10.30% 55
Uberlândia Shopping 81 15 TR + 11.30% 78
Boulevard Londrina Shopping 120 15 TR + 10.90% 53
Passeio das Águas Shopping 200 12 TR + 11.00% 49
Debentures - 1 st series 95 5 CDI + 0.96% 97
Debentures - 2 nd series 205 7 IPCA + 6.25% 207

Total 914 710
Weighted Average 10.2 11.40%
Co nsidering LTM TR at 1 6% p.a., CDI at 9.66% p.a. and IP CA at 5.24% as o f M arch 31 201
.1 , 2

SHOPPING CENTERS’ SALES PERFORMANCE
Total tenant sales in the existing and operating malls in Sonae Sierra Brasil’s portfolio
(excluding Uberlândia Shopping) totaled R$936.4 million in 1Q12, a 11.4% increase
over 1Q11. Considering the Company’s ownership interest in each of the ten malls
(including 20% of Campo Limpo Shopping and 51% of Parque D. Pedro Shopping),
sales reached R$564.7 million in 1Q12, a 13.9% increase over 1Q11.

The best performing malls in 1Q12 in terms of sales growth were: Shopping
Metrópole, Manauara Shopping and Shopping Campo Limpo, with sales increases of

11


30.8%, 21.7% and 21.2%, respectively. The remarkable performance of Shopping
Metrópole and Campo Limpo is mainly attributed to the recently opened expansion in
these malls (Campo Limpo in September 2011 and Metrópole in November 2011),
while the robust growth recorded by Manauara Shopping can be mainly attributed to
the accelerated maturation of the mall.

Shopping Center Tenant Sales
Shopping Penha 78,513 70,999 10.6%
Shopping Metrópole 72,754 55,641 30.8%
Tivoli Shopping 41,839 37,289 12.2%
Franca Shopping 36,107 33,291 8.5%
Pátio Brasil 76,588 76,727 -0.2%
Parque D. Pedro Shopping 291,466 273,180 6.7%
Boavista Shopping 56,853 51,680 10.0%
Shopping Plaza Sul 83,819 78,599 6.6%
Shopping Campo Limpo 59,087 48,760 21.2%
Manauara Shopping 139,411 114,547 21.7%
Total 936,437 840,713 11.4%

OPERATING HIGHLIGHTS
The operating indicators of Sonae Sierra Brasil in 1Q12 confirm the continued growth
of the Company. The overall occupancy rate in our malls was 98.5% of GLA on March
31st, 2012 (excluding 13.8 thousand sqm in Parque D. Pedro Shopping under
renovation for a new tenant). Same-store rent (SSR) reached, once again, double-
digit growth with a strong 12.1% increase over 1Q11, driven by rising inflation
adjustments and strong leasing spreads in lease contract renewals and new leases.
Same-store sales (SSS) posted a 9.8% increase in 1Q12 compared to the same period
last year.

Occupancy (% GLA)

98.8%
98.3% 98.5% 98.4% 98.5%
98.0%
97.7% 97.5% 97.4%

1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12

12


Same Store Sales Same Store Rents
(SSS)/sqm (in R$) (SSR)/sqm (in R$)

9.8% 12.1%

940 55

856 49

1Q11 1Q12 1Q11 1Q12

OUR PORTFOLIO
Our portfolio is comprised of eleven shopping malls in operation. Additionally, we are
in the process of developing two new shopping malls in major cities in Brazil: (i)
Londrina, the second largest city in the state of Paraná; and (ii) Goiânia, the state
capital of the State of Goiás. These two cities have experienced strong demographic
and economic growth. The selection of these cities for developing new shopping malls
fits into our primary strategy of growth through the development of potentially market
dominant shopping malls, in trade areas with income per capita and population
density that meet our requirements. We estimate that the combined GLA from these
two shopping malls is approximately 125.9 thousand sqm.

Shopping Centers in GLA ('000 Owned GLA Actual occupancy
Ownership
Operation City Stores sqm) ('000 sqm) index by area (%)

1 Parque D. Pedro* Campinas (SP) 402 121.0 51.0% 61.7 98.4%
2 Boavista Shopping São Paulo (SP) 148 15.9 100.0% 15.9 94.7%
3 Shopping Penha São Paulo (SP) 198 29.7 51.0% 15.1 98.2%
4 Franca Shopping Franca (SP) 106 18.5 67.4% 12.5 99.5%
Santa Barbara
5 Tivoli Shopping 144 22.1 30.0% 6.6 99.3%
d'Oeste (SP)
São Bernardo do
6 Shopping Metrópole 181 28.6 100.0% 28.6 99.6%
Campo (SP)
7 Pátio Brasil Brasília (DF) 235 29.0 10.4% 3.0 97.2%
8 Shopping Plaza Sul São Paulo (SP) 221 23.2 60.0% 13.9 99.4%
9 Shopping Campo Limpo São Paulo (SP) 148 22.3 20.0% 4.5 99.2%
10 Manauara Shopping Manaus (AM) 231 46.8 100.0% 46.8 99.5%
11 Uberlândia Shopping Uberlândia (MG) 201 45.3 100.0% 45.3 93.0%
Total 2,215 402.5 63.1% 254.0 98.5%**

* For the occupancy rate calculation was not considered a 13,757 sqm area under refurbishment for a new tenant.
** Does not include Uberlândia Shopping.

Projects under GLA
Development City ('000 sqm) Ownership Projected Opening
12 Boulevard Londrina Shopping** Londrina (PR) 47.8 84.5% 1Q13
13 Passeio das Águas Shopping Goiânia (GO) 78.1 100.0% 2H13
Total 125.9 94.1%

** Ownership considering partner will fully exercise its rights in the project

13


ONGOING PROJECTS
Sonae Sierra Brasil currently has a pipeline comprised of two greenfield projects
(Uberlândia Shopping was just opened in March 2012) and three expansions, which
should increase our owned GLA by approximately 87% to 390 thousand sqm by 2013.
It is worth noting that this substantial growth includes only those projects already in
our pipeline and excludes future projects yet to be announced.

Owned GLA Growth ('000 sqm)
Londrina
M&A and Goiânia
Greenfields
Expansion Plaza Sul
and Penha 118

1
17
45
PDP (II),
Metrópole (II) 390
and Tívoli

209 Uberlândia

+87%

2011 2012 2013 Total

NEW PROJECTS (GREENFIELDS)

Uberlândia Shopping: Uberlândia Shopping was successfully opened on March 27th,
2012. Uberlândia Shopping has 201 stores, including 15 anchors, a modern 5-screen
Cinemark movie theater with over 1,300 seats, and 2,400 parking spaces. The mall
has an occupancy rate of 93% of its GLA, with a diversified mix of nationally known
brands such as Arezzo, Brooksfield, Brooksfield Donna, Burger King, Centauro, Fast
Shop, Havaianas, Lacoste, Le Lis Blanc, McDonald’s, O Boticário, Ponto Frio, Vivara
and Victor Hugo. In addition, the mall brings new retail options to the city such as
Crocs, Track & Field, Noir Le Lis, Livraria Leitura and Kalunga. The two major anchors,
Walmart and Leroy Merlin, have been operating since December 2011.

Total gross investment for the project was R$ 201.2 million.

14


Uberlândia Shopping
City Uberlândia
State MG
Opening Mar-12
GLA (‘000 sqm) 45.3
SSB’s ownership interest 100%
Committed GLA 93%
Gross Investment (R$ million) 201.2

Uberlândia Shopping Interior

Uberlândia Shopping

Boulevard Londrina Shopping: Construction of Boulevard Londrina started in
September 2010, with expected opening in 1Q13. The mall’s GLA was 70% committed
to tenants as of March 31, 2012.

Boulevard Londrina Shopping
City Londrina
State PR
Expected Opening 1Q13
GLA (‘000 sqm) 47.8
SSB’s ownership interest* 84.5%
Committed GLA 70%
Gross Investment To-Date (R$ million) 122.9
* Ownership co nsidering partner will fully exercise its rights in the pro ject

Boulevard Londrina Construction Site

15


Boulevard Londrina Project Illustration

In April 2012, we replaced the general contractor initially hired for the construction of
this project. OAS, one of the largest and most reliable construction companies in
Brazil was selected as the new project’s general contractor and has already assumed
the activities on the site.

Passeio das Águas Shopping: Construction of Passeio das Águas Shopping, located
in Goiânia, the capital and most important city of the State of Goiás, started in
September 2011 with expected opening at the second half of 2013. The mall’s GLA
was 43% committed to tenants as of March 31, 2012.

Passeio das Águas Shopping
City Goiânia
State GO
Expected Opening 2H13
GLA (‘000 sqm) 78.1
SSB’s ownership interest 100%
Committed GLA 43%
Gross Investment To-date (R$ million) 91.6

Passeio das Águas Project Illustration

Passeio das Águas Construction Site

16


In addition to these projects already announced, Sonae Sierra Brasil is actively
searching for new sites, which fulfill the requirements of the Company’s strategy to
develop dominant malls in underpenetrated markets with a robust middle class.

SHARE PERFORMANCE
Sonae Sierra Brasil’s shares (BM&FBovespa: SSBR3) closed 1Q12 at R$28.90, a
20.4% increase from December 31, 2011. Over the same period, the Ibovespa Index
increased by 13.7%. Since the IPO in February 2011, the share price increased by
44.5%, compared to a decrease of 3.3% of the Ibovespa Index in the same period.

Ownership Breakdown

Free Float Sonae
33.35% Sierra
DDR SGPS
50% 50%
Sierra Brazil 1 BV
66.65%

17


GLOSSARY
GLA (Gross Leasable Area): Equivalent to the sum total of all the areas available for
leasing in the shopping malls.

ABRASCE: Brazilian Shopping Mall Association.

BM&FBOVESPA: BM&FBovespa S.A. - Securities, Commodities and Futures Exchange.

CSLL: Social contribution tax on net income.

EBITDA: Operating income before financial result + depreciation and amortization - gain
from fair value of investment properties

Adjusted EBITDA: EBITDA adjusted for the effects of non-recurring expenses effect

FFO (Funds from Operations): EBITDA +/- Net financial result – current income and
social contribution taxes

Adjusted FFO: FFO adjusted for the effects of non-recurring expenses.

IFRS: International Financial Reporting Standards.

IGP-M: General Market Price Index, published by the FGV.

IPCA: Consumer Price Index, published by the IBGE.

Anchor Store or Large Anchors: Well-known stores with special marketing and
structural features that serve to attract consumers, assuring continuous visitor flows and
uniform traffic in all areas of the mall.

Satellite Stores or Satellites: Small stores without special marketing or structural
features located around the anchor stores and aimed at general commerce.

NOI (Net Operating Income): Gross revenue from malls (excluding service revenue) +
parking revenue – mall operating expenses – provisions for doubtful accounts.

Novo Mercado: A special listing segment of the BM&FBOVESPA with special corporate
governance rules determined by the Novo Mercado Regulations.

SSR (same-store rent): Relation between invoiced rent for the same tenant in the
current period compared to previous period.

SSS (same-store sales): Relation between sales for the same tenant in the current
period compared to the previous period.

Occupancy Rate: Ratio between leased area and total GLA of each mall at the end of
each period.

18


APPENDICES
Consolidated Balance Sheet
ASSETS
CURRENT
Cash and cash equivalents 731,286 390,918 87.1%
Accounts receivable, net 21,231 24,690 -14.0%
Taxes recoverable 14,557 16,765 -13.2%
Advances to suppliers 36 - N/A
Prepaid expenses 148 505 -70.7%
Other credits 3,106 4,971 -37.5%
Total current assets 770,364 437,849 75.9%

NON-CURRENT
Long-term receivables:
Restricted financial investments 2,650 2,171 22.1%
Accounts receivable, net 11,139 10,815 3.0%
Loans to condominiums 307 328 -6.4%
Deferred income and social contribution taxes 7,364 5,915 24.5%
Juducial deposits 9,894 3,729 165.3%
Other credits 833 833 0.0%
Total long-term assets 32,187 23,791 35.3%

Investments 26,571 26,157 1.6%
Investment properties 2,886,176 2,776,050 4.0%
Fixed Assets 4,552 5,972 -23.8%
Intangible Assets 2,153 1,582 36.1%
Total non-current assets 2,951,639 2,833,552 4.2%

TOTAL ASSETS 3,722,003 3,271,401 13.8%

19


Consolidated Balance Sheet
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT
Loans and financing 25,886 17,619 46.9%
Debentures 4,080 - N/A
Domestic trade accounts payable 20,302 13,512 50.3%
Taxes payable 8,248 8,700 -5.2%
Personnel, payroll taxes, benefits, and rewards 8,980 8,396 7.0%
Key money 5,575 5,540 0.6%
Dividends payable 13,977 13,977 0.0%
Earnings payable 3,366 24,243 -86.1%
Payables for purchase of land 41,193 25,000 64.8%
Other payables 13,084 8,343 56.8%
Total current liabilities 144,691 125,330 15.4%

NON-CURRENT
Loans and financing 380,082 333,272 14.0%
Debentures 293,417 - N/A
Accounts payable - asset acquisition 44,139 - N/A
Deferred revenue 22,561 20,486 10.1%
Deferred income and social contribution taxes 354,374 351,444 0.8%
Provision for civil, tax, labor and pension risks 10,663 10,285 3.7%
Provisions for variable compensation 293 189 55.0%
Total non-current liabilities 1,105,529 715,676 54.5%

SHAREHOLDERS' EQUITY
Capital stock 997,866 997,866 0.0%
Capital reserve 80,115 80,115 0.0%
Retained earnings 22,046 - N/A
Profit reserve 865,417 865,417 0.0%

Equity attributable to shareholders 1,965,444 1,943,398 1.1%

Advance for future capital increase - - -

Equity attributable to owners of the parent company
1,965,444 1,943,398 1.1%
and advance for future capital increase

Minority interests 506,339 486,997 4.0%

Total Shareholders' Equity 2,471,783 2,430,395 1.7%

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 3,722,003 3,271,401 13.8%

20


Consolidated Income Statement
(R$ thousand, except earnings per share) 1Q12 1Q11 Var. %
NET OPERATING REVENUE FROM RENT, SERVICES
56,626 49,713 13.9%
AND OTHER

COST OF RENT AND SERVICES (9,598) (8,556) 12.2%

GROSS PROFIT 47,028 41,157 14.3%

OPERATING REVENUE (EXPENSES)
General and administrative (5,451) (4,056) 34.4%
External Services (2,174) (1,599) 36.0%
Provisions for doubtful accounts (446) (580) -23.1%
Other administrative expenses (2,392) (1,474) 62.3%
Depreciation and amortization (439) (403) 8.9%
Taxes (858) (255) 236.5%
Equity income 862 1,345 -35.9%

Change in fair value of investment properties 0 71,087 -100.0%

Other operating revenue (expenses), net (439) 256 N/A
Total operating revenue (expenses), net (5,886) 68,377 -108.6%

OPERATING INCOME BEFORE FINANCIAL RESULT 41,142 109,534 -62.4%

NET FINANCIAL RESULT 2,520 (116) N/A

INCOME BEFORE INCOME AND SOCIAL
43,662 109,418 -60.1%
CONTRIBUTION TAXES
INCOME AND SOCIAL CONTRIBUTION TAXES
Current (9,846) (3,442) 186.1%
Deferred (1,481) (19,738) -92.5%
Total (11,327) (23,180) -51.1%

NET INCOME 32,335 86,238 -62.5%

INCOME ATTRIBUTABLE TO:
Shareholders 22,046 62,559 -64.8%
Minority interests 10,289 23,679 -56.5%

EARNINGS PER SHARE 0.29 0.95 -69.6%

21


For the three months period
Cash Flow Statement
ended on
(R$ thousand) 3/31/2012 3/31/2011
CASH FLOW FROM OPERATING ACTIVITIES
Net income for the year 32,335 32,335
Adjustments to reconcile net income to
net cash from (used in) operating activities:
Depreciation and amortization 439 403
Residual cost of written-off fixed assets 325 -
Unbilled revenue from rentals (331) (923)
Provisions for doubtful accounts 446 580
Provisions (reversal of) for civil, tax, labor and pension risks 378 (200)
Acrrual for variable compensation 585 312
Deferred income and social contribution taxes 1,481 19,738
Financial charges on loans and financing 10,781 4,286
Interests, exchange rate changes on intercompany loans - 2,488
Changes in fair value of investment property - (71,087)
Equity income (862) (1,345)

(Increase) decrease in operating assets:
Accounts receivable 3,020 5,105
Loans to condominiums 21 (107)
Taxes recoverable 2,208 (1,732)
Advances to suppliers (36) 183
Prepaid expenses 357 (26)
Judicial deposits (6,165) 78
Other 1,865 814

Increase (decrease) in operating liabilities:
Brazilian suppliers (2,125) (2,492)
Taxes payable (452) (1,469)
Salaries, wages and benefits 103 (784)
Technical structure 2,110 2,996
Other obligations 4,741 1,954
Cash provided by (used in) operating activities 51,224 45,010
Interest paid (7,426) (4,959)
Net cash from (used in) operating activities 43,798 40,051

CASH FLOW FROM INVESTMENT ACTIVITIES
Restricted investments (479) (387)
Acquisition or construction of investment property (44,929) (52,448)
Acquisition of fixed assets (149) (410)
Increase in intangible assets (667) (137)
Receipt from sale of investment properties 11,514 -
Dividends received 448 250
Net cash used in investment activities (34,262) (53,132)

CASH FLOW FROM FINANCING ACTIVITIES
Capital increase - 465,021
Debentures issuance 300,000 -
Debentures issuance costs (6,627) -
Loans and financing raised 55,578 8,900
Loans and financings paid - principal (2,338) -
Earnings distributed by real estate funds - minority shareholders (4,566) -
Dividends payed (11,215) (9,291)
Share issuance costs - (23,437)
Related parties - (76,057)
Net cash from financing activities 330,832 365,136

NET INCREASE (DECREASE) IN BALANCE OF CASH AND CASH EQUIVALENTS 340,368 352,055

CASH AND CASH EQUIVALENTS
At end of year 731,286 413,621
At beginning of year 390,918 61,566

NET INCREASE (DECREASE) IN BALANCE OF CASH AND CASH EQUIVALENTS 340,368 352,055

Note: The operating and financial indicators have not been audited by our independent auditors.
22


Pro-forma Consolidated Income Statement (considering 51% PDP)
1Q12 1Q11 Var. %
SSB SSB
(R$ thousand, except earnings per share) Consolidated 49% PDP Consolidated
(100% PDP) (51% PDP)
NET OPERATING REVENUE FROM RENT, SERVICES
56,627 11,528 45,098 38,908 15.9%
AND OTHER

COST OF RENT AND SERVICES (9,598) (1,087) (8,511) (7,598) 12.0%

GROSS PROFIT 47,028 10,441 36,587 31,310 16.9%

OPERATING REVENUE (EXPENSES)
General and administrative (5,452) (401) (5,050) (3,642) 38.7%
External Services (2,174) (20) (2,154) (1,589) 35.5%
Provisions for doubtful accounts (446) (14) (432) (480) -10.0%
Other administrative expenses (2,393) (367) (2,026) (1,169) 73.2%
Depreciation and amortization (439) 0 (439) (403) 8.9%
Taxes (858) (20) (838) (245) 241.9%
Equity income 862 0 862 1,345 -35.9%

Change in fair value of investment properties 0 0 0 57,070 -100.0%

Other operating revenue (expenses), net (439) 43 (482) 225 N/A
Total operating revenue (expenses), net (5,886) (379) (5,507) 54,754 N/A

OPERATING INCOME BEFORE FINANCIAL RESULT 41,142 10,062 31,080 86,064 -63.9%

NET FINANCIAL RESULT 2,520 228 2,292 (324) N/A

INCOME BEFORE INCOME AND SOCIAL
43,662 10,290 33,372 85,740 -61.1%
CONTRIBUTION TAXES
INCOME AND SOCIAL CONTRIBUTION TAXES
Current (9,846) 0 (9,846) (3,442) 186.0%
Deferred (1,481) 0 (1,481) (19,738) -92.5%
Total (11,326) 0 (11,326) (23,180) -51.1%

NET INCOME 32,335 10,290 22,046 62,560 -64.8%

Note: Not audited.

23

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